Wednesday, October 8, 2008

Positive signs emerging in credit markets

Ten-Year U.S. Swap Spreads Collapse After Coordinated Rate Cuts

``The movement in the 10-year swap spread is signaling a break in the upward trend in credit spreads,'' said Tony Crescenzi, chief bond market strategist at Miller Tabak & Co. in New York. The movement ``is probably hinting at a drop in the two-year swap spread, which if it occurs would strongly signal an easing of pressures in the inter-bank market.''

Read article here.

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